Recorded RBI impact
License cancellation
License cancellation · Fresh imposition
Published by RBI
23 Mar 2006
Case Brief
On March 6, 2006, the Reserve Bank of India cancelled the Certificate of Registration granted to Punjab Leasing Private Limited, whose registered office is in Amritsar, Punjab. The cancellation was issued under Section 45-IA(6) of the RBI Act, 1934, after the company opted to exit the business of a non-banking financial institution. As a result, the company can no longer transact the business of a non-banking financial institution.
Why RBI Acted
The Reserve Bank of India cancelled the certificate of registration granted to Punjab Leasing Private Limited under Section 45-IA(6) of the RBI Act, 1934. The release states that the company had opted to exit from the business of a non-banking financial institution, which was the basis for the cancellation.
Operating Impact
Punjab Leasing Private Limited is no longer permitted to carry on non-banking financial institution business after the cancellation of its registration. The restriction affects the company directly and prevents it from transacting in its NBFC activities going forward.
Regulatory Basis
- Section 45-IA (6) of the Reserve Bank of India Act, 1934
- clause (a) of Section 45-I of the Reserve Bank of India Act, 1934
Action Facts
- Primary Impact
- License cancellation
- Order Date
- 6 Mar 2006
- Effective From
- 6 Mar 2006
- Entities Affected
- 1
- Entity Role
- Primary
- Entity Type
- NBFC